Automated Moderation

I'm having some problems with the Automated Moderation settings.

in Settings > Composer > Moderation:

When I have Moderate New Posts turned OFF, but Automated Moderation turned ON it doesn't catch ANY posts for moderation.

But when I have Moderate New Posts turned ON, AND Automated Moderation turned ON it catches ALL posts for moderation, not just New Users.

Am I missing something here? Is that behaving as it's supposed to?

https://www.landfx.com/community.html

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